How Deferrals Works in NAV 2016?

I’m sure you already needed it feature and it is possible you already made it as customization in older NAV version (as my company for example). By my opinion it is maybe small, but really necessary feature.

But now we can say, Microsoft is listening us. People from Microsoft really listened us and really made a good job. One of them is using deferrals as new financial feature.

With this new feature, NAV 2016 automatically defers revenues and expenses over a predefined schedule. Finally, we can recognize revenues and expenses in different periods compared with transaction posting period.

It is really easy to use. First we have to set up deferral templates with deferral account, number of period, calculation method, date…

Then, you can configure Default Deferrals Template on G/L Account, Item or Resource (not for Item Charge). In this situation you will use it by default in Purchase Order for example. But if you use e.g. G/L Account without Default Deferrals Template, you can add it on purchase line. You can always see Deferral Schedule from document and change something if you need it.

When you post document, the amount will be posted to the deferral account, and recognized over the defined schedule.

This is very short showing about this awesome feature, but run NAV 2016 and try it. You will see, it is easy and simple for working. Good job Microsoft.

14 thoughts on “How Deferrals Works in NAV 2016?”

If you think on Allocations in Rec.Journal, it is not the same. You can use Rec.Journals to allocate your already posted entries to other dimensions…
But using deferrals, you can allocate posting of expenses and revenues on different dates in original documents.